The CFTC may not wait for Congress. Chair Michael Selig made that clear at the agency’s inaugural Innovation Advisory Committee meeting on August 20, telling the industry that the agency stands ready to build a crypto market structure on its own terms.
The message was pointed at the Senate. The CLARITY Act cleared the House in 2025 and advanced through Senate Banking in May 2026, but a procedural vote still sits weeks away. If lawmakers cannot get the bill to the President’s desk, Selig says the CFTC will move without it.
If CLARITY continues to stall because of Democratic obstruction, the @CFTC will utilize its existing authorities to begin establishing a regime for crypto asset markets. We owe it to the American people to do so.
Here's how we'll get it done ⬇️ pic.twitter.com/mROqraLzFe
— Mike Selig (@ChairmanSelig) August 20, 2026
Selig’s Directive to CFTC Staff
Selig directed CFTC staff to explore rules that would establish a dedicated market structure for crypto assets using the agency’s existing legal authorities. Under the framework he described, current registrants and non-registrant crypto exchanges could receive designation by the CFTC as a type of Designated Contract Market, specifically a “crypto asset market.”
Those designated entities would be able to offer crypto asset trading on a leveraged or margin basis, subject to purpose-built rules under CFTC oversight. He also directed staff to engage with developers of on-chain finance protocols. The goal is to establish pathways for those developers to offer their protocols in compliance with U.S. rules.
The Political Context
Selig attributed potential obstruction squarely to Democrats, stating the CLARITY Act “reflects compromises from both sides of the aisle.” He said the agency would give the bill “breathing room for a vote,” but warned that inaction would trigger swift regulatory action from the CFTC.
His comments align with the administration’s posture at the White House crypto summit the previous day. President Trump called on Congress to pass “a fair version of the Clarity Act,” and Coinbase CEO Brian Armstrong identified the September 15 Senate procedural vote as the most critical near-term milestone.
The Innovation Advisory Committee
The committee held its inaugural meeting the same day Selig issued his remarks. The committee replaced the agency’s older Technology Advisory Committee. Its membership includes executives from Coinbase, Ripple, Gemini, CME, Kalshi, and traditional financial infrastructure firms. Walt Lukken, CEO of the Futures Industry Association, chairs the body.
What Comes Next?
The Senate returns from recess in September. If cloture fails on September 15, Selig’s remarks suggest the CFTC will move quickly to propose rules. The SEC’s own *Regulation Crypto Assets” proposal, released August 18, is already in a 60-day public comment period. Regulators are clearly not waiting for a perfect legislative outcome.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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